OPERATION CASE ON SERVICE DESIGN FOR MOBILE BANKING

RBI Responsible for :

 Regulatory & Supervisory issues

 Technological & Security standards
 Clearing & Settlement
 Transaction Limits
 Remittance of fund for disbursements

RBI Guidelines :

Regulatory & Supervisory Issues :

1. Banks which are licensed, supervised and having physical presence in India and who
have implemented core banking solutions are permitted to provide mobile banking
services

2. The services shall be restricted only to customers of banks and/or holders of debit/credit
cards issued

3. Only Indian Rupee based domestic services shall be provided. Use of mobile banking
services for cross border inward and outward transfers is strictly prohibited

4. Banks may also use the services of Business Correspondent appointed in compliance with
RBI guidelines, for extending this facility to their customers

5. There are guidelines issued by the Reserve Bank on ‘Risks and Controls in Computers
and Telecommunications’

6. The guidelines issued by Reserve Bank on “Know Your Customer (KYC)”, “Anti Money
Laundering (AML)” and “Combating the Financing of Terrorism (CFT)” from time to
time would be applicable

7. Banks shall file Suspicious Transaction Report (STR) to Financial Intelligence Unit –
India (FIU-IND) for mobile banking transactions as in the case of normal banking
transactions
Technology and Security Standards :

1. Technology used for mobile banking must be secure and should ensure confidentiality,
integrity, authenticity and non-repudiability

2. Transactions up to Rs 5000/- can be facilitated by banks without end-to-end encryption.

The risk aspects involved in such transactions may be addressed by the banks through
adequate security measures

Clearing and Settlement :

1. Bank and non-bank entities putting robust clearing and settlement infrastructure operating
on a 24x7 basis need authorisation from Reserve Bank of India, under the Payment and
Settlement System Act, 2007

Transaction limit :

1. Banks are permitted to offer mobile banking facility to their customers without any daily
cap for transactions involving purchase of goods/services

2. However, banks may put in place per transaction limit depending on the bank’s own risk
perception, with the approval of its Board

Remittance of funds for disbursement in cash :

1. In order to facilitate the use of mobile phones for remittance of cash, banks are permitted
to provide fund transfer services

2. The disbursal of funds to recipients of such services can be facilitated at ATMs or

through any agent(s) appointed by the bank as business correspondents. The recipient can
be a non account holder also

3. Such fund transfer service shall be provided by banks subject to the following
conditions:-

a. In case of cash out, the maximum value of such transfers shall be Rs 10,000/- per
transaction
 b. The disbursal of funds at the agent/ATM shall be permitted only after
identification of the recipient

c. Banks shall be responsible as principals for all the acts of omission or commission
of their agents

Approval of Reserve Bank of India :

1. Banks wishing to provide mobile banking services shall seek prior one time approval
from Reserve Bank of India by furnishing full details of the proposal

How QFD ( Quality Function Deployment) helps in service design :

● In case of ABC ltd Anjali aimed at focusing on the customer requirements (CR’s) to
design the mobile banking service system by using QFD.

● Quality Function Deployment (QFD) is a process and set of tools used to effectively
define customer requirements and convert them into detailed engineering specifications
and plans to produce the products or services that fulfill those requirements.

● QFD is used to translate customer requirements into measurable design targets and drive
them from the assembly level down through the sub-assembly, component and
production process levels

● QFD methodology effectively communicates customer needs to multiple business

operations throughout the organization including design, quality, manufacturing,
production, marketing and sales.

● QFD reduces the likelihood of late design changes by focusing on product features and
improvements based on customer requirements thus saving cost and time.

● QFD provides a structured method and tools for recording decisions made and lessons
learned during the product development process.

SERVQUAL framework :

● SERVQUAL model is one of the instruments used to measure the quality of services.
 ● It is designed to capture consumer expectations and perceptions of a service along the
five dimensions that are believed to represent service quality

● Reliability

● Assurance

● Tangibles

● Empathy

● Responsiveness

Application The SERVQUAL model :

● To assess the quality of physiotherapy services

● Measuring service quality in information technology centre

● To determine the relative importance of critical factors in delivering service quality of

banks in Malaysia

Possible business applications of M-banking :

● Transfer of funds of various government schemes like NERGS

● For small business it is very useful

■ Request of account balance

■ Control of account movements

■ Instant payment

■ Administration of account

■ Instant loan approvals

Application of m-Banking for Rural Development :

● Greater Financial Inclusiveness

 ● Lessened cost of services and greater reach

● Reducing dependency on physical branches

● Direct transfer of money to the scheme beneficiary’s account

● Convenience in terms of round the clock services

● Paperless and environment friendly

Presented By :

Dishant Patel

Fore School of Management